TRANSITIONING
eXtract takes pain in bid to move into investment
The transition exercise has seen it take billions of rand in write-downs and also sell mining equipment to repay debt
eXtract Group, chaired by former Harmony Gold CE Bernard Swanepoel, is moving towards becoming an investment company rather than a contract miner, an exercise that has seen it take billions of rand in write-downs and also sell mining equipment to repay debt. eXtract, which has recently sold the fleet at its Tharisa mining contract to the chrome and platinum group metals miner, reported a R2.1bn loss for the 14 month period to end-August, including a R1.49bn impairment, compared to the R2.25bn figure of the previous period in which its impairments were nearly R1.5bn. During the period, it sold R602m worth of mining assets as it leaves the operational side of mining. It sold a further R441m of assets by the end of October. "The period under review has been both eventful and challenging for eXtract Group, with the group transitioning into its new form and subsequently changing the strategic direction of the group from a contract miner to an investment fund as led by management and the ...
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